My Experience with Opening a US Bank Account from Abroad
When I first started my e-commerce journey in 2019, I faced numerous challenges. One of the biggest obstacles was opening a US bank account while living abroad. As you know, having a business bank account is essential for running an online business.
Opening a bank account without physically being in the US is nearly impossible. Most US banks require in-person verification to open an account. While some agents offer services to handle this process on your behalf, I strongly advise against using them due to potential risks and high costs.
I spent a significant amount of money—from forming an LLC to setting up a business bank account. At that time, I was unaware of cost-effective methods that could have saved me money.
Two Options to Open a US Bank Account from Abroad
There are two reliable options to open a US bank account remotely:
- Mercury Banking
- Wise (formerly TransferWise)
Before proceeding, you first need to form a US LLC. Several companies assist overseas business owners with company formation, but many of them charge excessive fees. I recommend avoiding those high-cost services and opting for more affordable alternatives.
Recommended Service for ITIN and Company Formation
One of my favorite services for ITIN application and company formation is ITIN Application Assistance. They offer fantastic service, especially in terms of customer support. Their pricing is lower than most competitors, and they deliver services on time.
I have a special agreement with them to provide a discount on their services. If you haven’t formed your company yet, I recommend choosing the US Company, EIN, and ITIN package. This package is incredibly affordable, and you won’t find a better deal elsewhere.
Additionally, by using the coupon code REZA, you can get a $50 discount. However, this offer is available for a limited time—so act fast!
What is an ITIN, and Why Do You Need It?
ITIN stands for Individual Taxpayer Identification Number. It is a 9-digit tax identification number issued by the IRS for non-residents who own a company in the US. If you plan to operate a US-based business, obtaining an ITIN is crucial.
Benefits of Having an ITIN:
- Helps in opening a US bank account from abroad
- Required for Stripe, PayPal, and other payment gateways
- Alternative to Social Security Number (SSN) for non-residents
ITIN Format Example:
XXX-XX-XXXXIf a platform or service requires an SSN, you can often use your ITIN instead.
How to Apply for an ITIN?
To apply for an ITIN, you need:
- A US-registered company
- An EIN (Employer Identification Number)
- A scanned copy of your passport
The ITIN application process currently takes 12-14 weeks due to COVID-19 delays. Before the pandemic, it used to take 6-8 weeks, and processing times may improve in the future.
For more details or assistance, visit the ITIN Application Assistance website or contact their customer support.
Best Banking Options After Forming Your US Company
Once you have your company set up, you have two banking options:
1. Mercury Banking
Mercury is a top choice for non-US residents as it offers easy online banking solutions.
2. Wise Business Account
Wise provides multi-currency business banking services. However, there is a one-time fee of $31 (or its equivalent) to activate business banking details. The only way to pay this fee is with a bank card under your personal or business name, which can be challenging.
My Experience with Mercury and Wise
I first opened a Mercury account, then used my Mercury bank card to pay the Wise activation fee. Now, I successfully use both accounts for my business transactions.
Final Thoughts: Take Action Now!
Opening a US bank account from abroad can be a challenging process, but it is completely doable if you follow the right steps. I encourage you to take action now because as time passes, regulations may become stricter.
I hope this guide was helpful! If you have any questions, drop them in the comment section.
